Auto recycling comprises reusing refurbished parts and shredding and recycling car materials such as plastics, aluminum, and steel. End-of-life vehicles are dismantled in recycling plants to remove components and subsequently shredded in order to recover materials.
Key Drivers of Car Recycling Market
Vehicles maintain a high recycle rate of 80%, automobiles are the most recycled consumer products worldwide, thus the car recycling market holds high potential globally. Governments across the globe, such as the U.S., have been active in levying high taxes on the import of virgin steel in order to maintain commodity prices and to boost material recycling. Thus, automakers are compelled to use recycled steel
Recyclers associations and governments worldwide, such as Automotive Recyclers Association (ARA) and the U.S Environmental Protection Agency, are implementing sustainable practices to reduce the environmental impact. Automakers and auto parts manufacturers are compelled to use refurbished and recycled parts. Increased promotion of recycling and establishment of newer brands, such as Green Recycled Parts (GRP) by ARA, are projected to drive the global car recycling market during the forecast period.
Based on material, plastics segment to expand significantly
Currently, around 39 types of plastics and polymers are used in automobiles. Presence of a large variety of plastics and polymers poses a challenge to recycler with high process value. However, rising environmental standards worldwide and growing emphasis on recycling plastics is estimated to boost the recycling rate of plastics used in interiors, bumpers, and fuel tanks.
North America held a leading share of global car recycling market
North America accounted for a leading share of the global car recycling market. Car recycling is a prominent billion dollar industry in the U.S employing more than 100,000 people. The U.S has the highest vehicle recycle rate globally and hence, held a leading share of the global car recycling market.
Asia Pacific contributes significantly to the production of vehicles, in terms of volume; however, the car recycling rate in developing countries in the region is relatively low. Rise in awareness and active government initiatives to promote green business models is anticipated to drive the car recycling market in the region.
Key Players Operating in Car Recycling Market
The global car recycling market is expanding consistently, as a large number of players operate in the market. A few of the key players operating in the car recycling market are: